The property, a two-story project on 1.11 acres at 27184 OrtegaHighway, is called the Capistrano Collection and sold for justunder $10.2 million to Orange County-based Needleman Investments.MacLellan says that the rent guarantee, an unusual but not unheardof provision in a sales contract, was a means of maintaining thesales price that had been negotiated for the property.

Built in 1991, the Capistrano Collection is approximatelytwo-thirds retail and one-third office, with a diverse mix oftenants. The deal closed at a cap rate of 5.4% on existing income,a record low cap rate for an office/retail project over $10 millionin Orange County, according to Faris Lee.

The property attracted about six or eight offers, according toMacLellan, who says that the prospective buyers consisted primarilyof local private investor groups and high-net-worth individuals. Henotes that properties in San Juan Capistrano command top pricesbecause of the desirability of the area, the lack of land fordevelopment and the difficulty of obtaining entitlements.